diff --git a/lib/permissions/permissionutil.inc.php b/lib/permissions/permissionutil.inc.php
index f11bb0d..a8089bd 100644
--- a/lib/permissions/permissionutil.inc.php
+++ b/lib/permissions/permissionutil.inc.php
@@ -6,31 +6,31 @@
  * Document Management Made Simple
  * Copyright (C) 2008 KnowledgeTree Inc.
  * Portions copyright The Jam Warehouse Software (Pty) Limited
- * 
+ *
  * This program is free software; you can redistribute it and/or modify it under
  * the terms of the GNU General Public License version 3 as published by the
  * Free Software Foundation.
- * 
+ *
  * This program is distributed in the hope that it will be useful, but WITHOUT
  * ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS
  * FOR A PARTICULAR PURPOSE.  See the GNU General Public License for more
  * details.
- * 
+ *
  * You should have received a copy of the GNU General Public License
  * along with this program.  If not, see <http://www.gnu.org/licenses/>.
- * 
- * You can contact KnowledgeTree Inc., PO Box 7775 #87847, San Francisco, 
+ *
+ * You can contact KnowledgeTree Inc., PO Box 7775 #87847, San Francisco,
  * California 94120-7775, or email info@knowledgetree.com.
- * 
+ *
  * The interactive user interfaces in modified source and object code versions
  * of this program must display Appropriate Legal Notices, as required under
  * Section 5 of the GNU General Public License version 3.
- * 
+ *
  * In accordance with Section 7(b) of the GNU General Public License version 3,
  * these Appropriate Legal Notices must retain the display of the "Powered by
- * KnowledgeTree" logo and retain the original copyright notice. If the display of the 
+ * KnowledgeTree" logo and retain the original copyright notice. If the display of the
  * logo is not reasonably feasible for technical reasons, the Appropriate Legal Notices
- * must display the words "Powered by KnowledgeTree" and retain the original 
+ * must display the words "Powered by KnowledgeTree" and retain the original
  * copyright notice.
  * Contributor( s): ______________________________________
  *
@@ -304,11 +304,11 @@ class KTPermissionUtil {
         $is_a_folder = is_a($oFolderOrDocument, 'Folder');
 		$is_a_document = is_a($oFolderOrDocument, 'Document') || is_a($oFolderOrDocument, 'KTDocumentCore');
 
-		//ensure that the document shortcut is being updated. 
+		//ensure that the document shortcut is being updated.
 		if($is_a_document && $oFolderOrDocument->isSymbolicLink()){
 			$oFolderOrDocument->switchToRealCore();
 		}
-		
+
 		$oChannel = null;
 		$aMapPermAllowed = null;
 		$oPermLookup = null;
@@ -731,9 +731,11 @@ class KTPermissionUtil {
 
         Folder::clearAllCaches();
 
+        // Update all documents in the folder and in the sub-folders
         $sQuery = "UPDATE $default->documents_table SET
             permission_object_id = ? WHERE permission_object_id = ? AND
-            parent_folder_ids LIKE ?";
+            (parent_folder_ids LIKE ? OR folder_id = ?)";
+        $aParams[] = $iFolderID;
         DBUtil::runQuery(array($sQuery, $aParams));
 
         Document::clearAllCaches();